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tv   Taking Stock With Pimm Fox  Bloomberg  June 2, 2014 9:00pm-10:01pm EDT

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>> this is "taking stock" for monday, june 2, 2014.
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i am pimm fox. today's theme is studying. u.s. manufacturing expanding in may at the fastest pace but that was not the whole story. twice they had to make a correction to this data release. i will speak to the economist who studied the numbers and then caught the mistake. terry fator -- you will hear how his study of ventriloquism led him to be the second highest-paid comedian. my producers will try to stump me with today's mystery guest. all that and more over the next hour, but first let's get headlines from su keenan. >> bill rhodes' pimco return fund suffered $4.3 billion in redemptions last month. this number extends a record streak of withdrawals for the world's largest bond fund. the redemptions left it with $229 billion in assets. the federal aviation administration is considering drone exemptions for movie and tv productions. they said several aerial, photo, and video companies have asked for regulatory exemption that would allow drone usage. krispy kreme cut its yearly earnings forecast. shares are falling in the after-hours trade. back to you. >> thank you. apple hosted businesses at its worldwide developers conference today in san francisco.
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apple did not come out with any new machines, but it did promote a new operating system for its mac computers and iphone. tim cook introduced yosemite and a new mobile software called ios 8. >> it has great in-user features. it also has incredible developer features so you can expand your experience and build apps you couldn't do before. >> with more, let's go to cory johnson. he has been at the conference all day. thank you for being with me. what did you take away from these new software introductions? what is the strategy behind this move? >> it looks to be improvements of what they do. apple is fundamentally known for taking difficult things and making them simple. they have often succeeded at that.
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i think as ios has gotten more involved, the capability of the phone becomes so great, the complexity has shown up in the software and user experience. it is constant refining purposes. stripping out some of the hair out of this and making it more accessible. it is what we see from trying to give developers and the operation a different look, as well as to create some platforms for developing devices for the home and devices to manage health. none of this is groundbreaking. it is going to be about the execution so we cannot fairly evaluate at an event like this. we have seen apple try things in the cloud for years of great failure. i think you will see a lot of press about this event today saying that they have this new great solution.
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there isn't a single person here that knows that because all their prior efforts have run into big problems. >> what about apple's progress in making all of its devices play with each other nicely, seamlessly without any problems and maybe even having them play with android phones? >> that is going to be really key. we have seen spectacular growth for the iphone is in some places like the u.s. the most popular phone. the ipad as well. we have seen so much from these devices. the operability has not been great. the ability to take a picture on your phone and see is what your favorite pages on your ipad, that is one of the things they were showing off. there are family plans we can manage all the devices in a family as big as six as long as
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they have the same credit card. trying to manage some of that operability might tighten the ecosystem. >> i understand that you have a special guest for us. >> indeed. he has been following outdoor for quite a while. this is a very different developers conference? >> i wouldn't say it is. it is on par. a lot of people came in today expecting hardware, but they don't typically do that. they really focused on the software and they did some cool things. you mentioned the continuity where you can write an e-mail on your iphone and then realize there is more you want to do so you sit down at your mac and continue composing the e-mail. in theory, it is seamless. >> you have been covering apple for so long. give me a list of all the cloud computing efforts they have had. people such as steve jobs have been ripped apart. >> mobile me and now icloud, and none of them have been resounding successes.
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this is not the cloud. the continuity is not the cloud. i give them a way better than even odds to get that to work right. what they are doing with the cloud, the whole file system -- we will see how that does. i think one of the other huge things that mostly to probably do not realize is the extensibility. >> they talked a lot about that and a lot of it was about the tools that developers would use and like a good mac conference, people jumped up and cheered when they hear about some plug-in that you can add to your phone. >> that is just it. apple has been so sandboxed out -- meaning that every app lives in its own space and apps cannot really talk to each other. if you have their web browser, up until now a developer cannot write something that added functionality to safari.
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you just lift it with whatever they put in. extensibility means that they allow plug-ins so you can have things like a translator plug-in inside safari. you can have all kinds of things inside safari. maybe web plug-ins in mail. their plug-ins where you can have a new keyboard that is just right there in all your apps. previously, that was something apple did not allow. it is a catch-up game with android but i think it is huge. >> if you look at the history of the mac and apple developments, i mentioned the stuff and i don't want to denigrate what they are doing, but i feel like a lot of this is looking back and fixing old problems. more than apple has been doing for a long time. >> i think so. ios 7 was a totally new game for them. a new look. i think ios 8 is a renewed focus on ipad that ios 7 didn't do.
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you can fault them for going back and fixing stuff but we can also credit them for taking a look and saying, hey, here we go. this is the stuff our customers need. >> my favorite example was steve jobs demonstrating a new feature that would underline a misspelled word. the mac faithful crowd, your readers and the like would jump up and cheer at something that was already available in windows but they didn't know it. tim cook talked about the fact that so many people in this competent never been here before. did you get a sense -- writing for mac, that is a very different kind of crowd? >> it feels like the same crowd. and coming your for the past 10 years. they cannot fit all the people that want to be there. there is a natural churn.
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it is the luck of the draw of who comes in but it is always the same type of people -- the developers. >> thank you very much. >> thank you, cory johnson. coming up, a sharp knife, powerful arms, and a strong constitution. what does it take to be a master butcher and why is demand for food and food being kosher growing? it is mystery guest monday. time for the first clue. my mystery guest captured the world's attention with just one shot. ♪
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>> the food industry has always been looking for growth. tyson food has set its sights on hilshire brands so what segment of the food business averages more than 10% growth over the last five years?
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the kosher food business. it is worth about $12.5 billion each year and let's find out what makes food kosher. we have albert. he has a gourmet french and asian inspired steakhouse. good to have you with us. let's talk about the kosher food business. $12.5 billion, 10% growth over the last five years. what is it that makes food kosher? >> the quality of the food and being it the food is kosher is because people -- there has been a demand over the past couple of years because people wanted to have kosher steaks at a fine cuisine. that is when i opened the reserve cut. >> what makes food kosher? we are talking about the industry itself -- there is a stamp of approval that has to be made.
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i am wondering how you can define that. >> what makes the food kosher is when -- the way the beef is slaughtered. it is supervised by rabbis. there is a certain way where kosher food is done. >> you come from a line of master butchers. you and your family emigrated from damascus in syria. tell us about your story. >> i come from a long line of master butchers. my family has been butchers for the past 200 years in damascus, syria. we owned and operated one of the country's most successful and respected butcher shops in syria. i moved at the age of 12 to the unites states and i started to go to high school. after graduating high school, i decided to open my own kosher butcher shop with my family.
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>> how has that been progressing? >> it turned out phenominal. i saw high demand for kosher that people wanted. it was not being met in the market. >> did you have to study in order to become a kosher butcher? >> i worked at a kosher butcher shop for five years. with the help of my family, that is our family trade. >> what kinds of physical skills? you have to be good with a knife, able to haul meat, and withstand cold temperature. >> you have to be trained on how to hold a knife. how to trim the meat and look at the piece of meat and know the quality. >> why did you decide to open up a restaurant in addition to
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selling meat to customers? >> after the prime cut, our butcher shop, i saw there was high demand on kosher steakhouses and dining. there wasn't any that was using the finest quality kosher meat. we use the finest quality kosher meat with high standards where everything is kosher from the steak to the wine. we age the meat for 36 days, that is what brings is up another notch. >> what about the market? is it only people that want kosher food or people that want food that can be tracked along the supply chain? where does all the food come from? >> the market has been increasing more and more over the past five years.
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over 25% of our customers at the reserve cut are non-kosher. it is high-quality and healthy. >> does it cost more? >> yes. supervising the way the meat is being cut, supervising the cooking, everything is supervised from the minute you thaw it to when it is on the table. >> do you want to open more restaurants? more butcher shops? have your own line of meats? >> we have many ideas. i don't have anything to share. >> are you the chef at the restaurant or are you just supervising? >> i am the owner and operator. >> thank you for being with us. he is the owner of reserved cut kosher steakhouse. it is mystery guest monday. my mystery guest is not your typical "sports illustrated" cover girl.
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details ahead. ♪
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>> this is "taking stock." i am pimm fox. a research study states that that global private tutoring market is projected to surpass $103 billion by 2018. a company called tutor doctor has set itself up to benefit from this trend.. over the past five years, the company is expanded from two countries to 15 and over 15,000 tutors. tutor doctor's vice president of international franchise development joins us here. thank you for being here. how do you describe tutor doctor? >> it offers supplementary
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education services. one-to-one and at home with fully personalized program for each student where we tutor them professionally and work at the rhythm of the student which is not exactly the same as the rhythm of the class because some students can fall behind were some students are too sharp and they go ahead of the class and they get unmotivated. >> where do the tutors get their training? >> we have an orientation program. online training were troopers learn how to discover the learning style of each student and then how to work based on the specific needs. they become like many project managers and we work not only on the flavor of the homework of the day as most independent tutors work, but we plan on short, medium, and long-term plans to take the students of the ultimate goal.
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>> how do you best the credentials of each of these individual tutors? how do you know that their academic rituals or the teaching ability is accurate? >> we have a very demanding process. given online filter so we checked the applications online. we actually have a face-to-face interview. most of the independent tutors are independent but with us, we train them on how to interview, what questions to ask. we checked the academic credentials and referrals and we get a mandatory background check. >> those that have adopted this model, where do they come from? what industries and backgrounds? >> most people would think they come from education. 83% of our franchisees do not come from education. they are people that want to be financially independent. they want to own their own business. they decided to join the tutor doctor as they don't need to have education background. >> what kind of territory would you get as a franchisee? could you buy a geographical region? how do you know what is the best
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fit? >> we have geographical territories which have 100,000 in population. we offer it in 15 countries. in developing countries, we may have different territory structure but that is mostly the way we upgrade. >> you describe how you vet the various tutors. what about the actual tutoring sessions? are they one to one in person or of those also online? >> about 92% of our service is actually face to face at the home of the student. it is important to mention that not only with children, we also teach adults and seniors. very few companies focus on seniors. 92% is at home and the other 8% we tap into our virtual network. >> can you describe the different demands for each of the different levels and what you are seeing in terms of what is the most popular subjects?
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>> it is about 85% is school-aged children and a 15% gets distributed between adults and seniors. about 85%, about 42% comes from elementary school kids. >> elementary school children. is this designed to pass a certain test or is it to demonstrate certain types of proficiency so that they can then enter more fast-paced or more rigorous educational institutions? >> we work on the different objectives of each student. sometimes we need to reveal confidence with the student. sometimes we need to help the student not build the school year. we teach all subjects and all ages so we are going to do a consultation to cover what the student needs. we are going to design a custom program for each student. it could be just passing the next exam.
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>> what is the cost? >> typically in the united states, we charge about $55 an hour which is premium service at a premium price. we work on packages of hours based on the students needs. sometimes we work at two months at 48 hours depending on the student needs. >> you mention you have 15,000 tutors that are part of the whole franchise business of this. are you seeing any turnover? on many of those people leave on a regular basis to be supplemented by new tutors? >> we have a very good interview process so we try to seek tutors that would actually enjoy or are looking to help people. yes, we have a turnover, but with our type of interview, we have lower turnover. >> i want to thank you very much for joining me.
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it is 26 minutes past the hour. time for on the markets. s&p 500 gains about one point. s&p 500 adds 26 and the nasdaq falls five points. coming up, he won "america's got talent" in 2007 and now has a $100 million deal. ♪
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>> this is "taking stock" for monday, june 2, 2014. the s&p 500 index closes at another record today rising up about one point. it was not without some drama however.
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the institute of supply management had to issue two corrections after an outside economist caught a mistake in its manufacturing data for the month of may. that economist, kenneth kim, is joining us now from princeton. great to have you with us. explain what is this particular number all about and what did you find when you did a little digging? >> the ism is a widely followed manufacturing survey. it provides data on the performance of manufacturing for a given month. once i saw the original print, i thought that was shockingly weak because the consensus was looking for about 55.5. i went on to the website and started putting in the data as i usually do into my worksheet. the numbers that i was inputting
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off their website was not adding up to what the report and figures were. i did double checking, triple checking to make sure that i was right, but i still thought we haven't seen an error like this before in the past from the ism. i thought i was in error and there was something wrong with my spreadsheet. as i kept checking the data, the numbers still do not add up. after inputting all the unadjusted figures, i thought i would try something and i would use the judgment factors for the previous month for april as opposed to may which they should've been using. indeed, the april factors spit out incorrect data that the ism reported and that served as a check that the ism used the incorrect adjustment factors in reporting the original figures. >> if this can happen with the current data, does this send you back to previous data to do even more investigating? >> no because unadjusted data, they do not change unless you receive more information. the ism does not revise of those unadjusted figures.
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the initial report stands as it is. we have already published it back in january for the full year. these are not concurrent. it does not change each month. they stay static for the 12 months of the year. these numbers will not change if done correctly. >> after doing it correctly, it seems as though at least from the ism's perspective, manufacturing is doing better than previously estimated. >> it does. the new orders and production indexes moved higher. production moving above 60. we have had some weakness in employment, but in terms of looking at the data, the new orders i consider as the leading index for economy. i would pay more heat to have the new orders index behaves for
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a month on top of the other indexes. >> can you come up with any idea why it took two corrections to fix the original ism report number? >> the first correction -- i guess both corrections i would say it was due to haste in trying to get the corrected data out. they failed to double and triple check the data. i would say in a moment of haste, that is why they had to make two corrections. >> thank you very much. kenneth kim, joining us from stone and mccarthy. he caught today's error in the ism's first report. another report alleging that
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billionaire investor carl icahn, golfer phil mickelson, and las vegas gambler billy walters are under investigation by u.s. authorities for insider trading. the reports have sparked reaction from the legal and the sports world. we have the former security exchange commission enforcement attorney. i am glad to have you here. do you think you can make this up or is this something that can only come from the government? how did this happen? how do you describe this to people? >> there is no validation or clarification that carl icahn has been served with any subpoena or any other breach by the sec. we started investigations and we always started from the bottom and worked to the top. >> you didn't start by looking at an article in the newspaper? >> maybe some cases. where there is smoke, there is fire and you need to pay attention to it. >> having said that, you read a story in the newspaper about a
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potential investigation but there are no named individuals and there was another story that says the ongoing investigation has been compromised by the leak of the information that there may have been an investigation in the first place. >> people in the government recognize that. it is very damaging to anybody in the world, let alone a public figure, that the government may be looking in your dirty laundry. they are trying to determine whether carl icahn who tried to buy clorox had shared information with phil mickelson or mr. walters, and whether that violated federal securities laws. >> ok. from the perspective of the fbi or government investigators, do you need to travel and delay someone's departure on a plane if he is a professional and well-known golfer and you are
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pulling him off a jet? >> am i a big fan of the fbi who has been coming and trying to harass or bother mr. mickelson? that doesn't sound like the right way. do we know all the background information? did they try to reach out to him? if that were the case, they handle it in a much more professional and quiet manner. we have experiences -- i am not a criminal lawyer. i am a security lawyer. i have heard stories that they will have someone raking leaves at their house and the fbi shows up and tries to spook the person to communicate things that they might not have shared. >> the come meet me in the office conversation usually comes with an attorney, correct? >> if you talk to the government with a lawyer, you are crazy. there are some many things that could occur. the odds are not stacked in your favor so to speak even if you
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are innocent. >> as someone who has experience in government and in private practice, and you getting the view on this story, who leaked it? why would they? >> i couldn't begin to tell you. your guess would be as good as mine. the question is whether somebody at the fbi was excited that it was phil mickelson and decided they would make headlines by going and interrupting his business ventures. >> if you had to represent any of the individuals involved, would you say the case has been compromised? >> i would be irate. i would suggest to any of the government officials to not contact our client without reaching out to us. he is not going to speak to you. i would press on. there have been times where the government has routinely reached out to people who are not
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targets and try to have a conversation with them and you learn later on that it may not have been a casual conversation. when a cop pulls you over, does he ask you how the weather is? no. >> well said. thank you very much. coming up, i will speak to the second highest-paid comedian in the world and find out how he went from performing at country fairs to headlining in las vegas. it is time for my mystery guest clue number three. my guest is counting down the days to brazil. i believe that means the olympics. ♪
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>> talk about a story with a
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good punchline. comedian terry fator had all but given up on his passion of ventriloquism in 2007. he won "america's got talent" and he is currently the second highest-paid comedian only after jerry seinfeld. i sat down with him and spoke about his decision to pursue his passion and the obstacles along the way. >> back in the early 1990's, i had a record company that was going to sign me and they told me i had to stop the impressions. i told him that is really where my heart is. i love doing my own stuff. i just released a cd that is available on itunes. that is not what my first love is. it is being able to just do something that is whimsical and fun and bring the ability to do impressions of singers out in a way that is something no one else has seen. >> i couldn't have said it better myself although it does help there is a turtle.
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>> it does help. it helps that the amount of money you are getting paid would put you number two right behind jerry seinfeld as the most -- highly compensated comedian. how does that feel? >> it is absolutely incredible. it is a little overwhelming. it is not something i focus a lot of my time and attention on. i spend all of my time thinking about what my next character is going to be. you never know what it might be. the latest character i put into my show is a beetle. he claims he was an original beatle with john paul -- george and ringo. >> how difficult was it for terry to handle his newfound fame? did he spend a lot of that money? >> he certainly did.
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>> when i first signed a deal with the mirage, i was a crazy spender. i married an absolutely wonderful lady who reigned me in and maybe so that i wasn't so -- i did my two cars a year. now, we have three nice family cars and six dogs. that is pretty much where we spend our time on. >> do the dogs make you jealous? >> they think i am a chew toy. >> i can't bring him around the dogs much because they want to bury him. >> what is it like to have to do a show every night? >> it is fantastic. doing a show every night is my dream. my place is on stage. the best part of this is before "america's got talent," i was traveling all over the country
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and playing at county fairs. >> i was in a petting zoo once. >> i would do schools and first-grade classes. now, i get to sleep in my own bed every night. i play with my dogs and i go do my show at the mirage and go home. >> what do you think about the art form of ventriloquism? i know you have written a book called "who is the dummy now?" do you think it is going to be treated differently now that you are taking it to this level? >> i think that any time someone does something well, they are going to be able to be a success. i think people look at it and might get a negative impression because they might've seen a bad one in their life. the same thing with mimes. a lot of times mimes get a bad reputation. if you take something to the new level and do something really unique like i do with impression of singers using puppets.
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that is really the only reason i use it so i can do these impressions of singers through the puppets. i think if you do something well, you will be successful. >> what voice or character do you think terry first perfected when he was starting out? >> one of the very first voices i ever did when i was learning to do impressions was garth brooks. >> can i do some? ♪ i showed up in boots at the black-tie fair ♪ that was one of the first singing impressions i did with my new show. show. >> let's move onto our mystery guest. my producer has been kind enough to show us a few clues. my mystery guest captured the world's attention with one shot. my mystery guest is not your typical model. my mystery guest is counting down the days to brazil.
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let's bring out our mystery guest. thank you for being here. talk about something to do with a shot. are you involved in the olympics in the shotput business? >> no. >> archery? no. >> rifles? >> absolutely not. >> i notice you are wearing the fifa world cup brazil so do you have something to do with soccer? >> yes. >> are you looking forward to the world cup in brazil? >> eagerly. >> would you be rooting for the united states? >> yes. >> do you play soccer? are you a champion? >> i am. >> if i looked at past footage of various world cups and festivals of soccer, would i see you? >> yes. >> are you a goalie? >> no. >> would i see you on the cover of "sports illustrated?" >> yes. >> i know who you are but i can't remember you're name. did your spontaneous exuberance at the end of a soccer match get captured on film and made you a star?
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>> it did. >> we have 20 seconds. i know who you are but i cannot remember your name so you might as well just let me know. you defeated me. >> yes! >> you beat me. >> i am brandi chastain. >> congratulations. we are going to continue the conversation. we will tell everyone about your accomplishments. maybe you can give us an idea of who is going to win in brazil. >> i'll do my best. >> thank you very much. we have more with our mystery guest next on "taking stock." ♪
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>> this is "taking stock." i'm pimm fox. a programming note for you -- join us tomorrow at 1:30 p.m. for a live exclusive interview with goldman sachs chairman and chief executive lloyd blankfein.
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he will be joined by bloomberg founder and majority owner michael bloomberg on "market makers." a conversation about goldman sachs, the current state of entrepreneurship in the united states and the news of the day. tune in tomorrow at 1:30 p.m. tuesday new york time. my mystery guest is a mystery no longer. she is former u.s. women's soccer player and two-time world cup champion brandi chastain. you are getting ready to go down to brazil? >> i am not going myself. i am happily watching it from home. i can hardly wait. >> what is the feeling like to go out on a soccer pitch and have that many people looking at you? >> i can close my eyes and i can feel that swelling of excitement.
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you are waiting for that whistle to blow. it is like all your childhood dreams are about to come true as soon as that whistle is blown. i remember when we had the world cup here in 1999 and our first game was at giants stadium. coming through that tunnel and having this explosion of the sun and the lights and the color and the grass and the smell. it is just phenomenal. it is a wonderful moment in a soccer player's life. >> tell us about the preparation and the discipline and the hard work that goes on when there are no people in the stands. >> like anything. you want to be the elite. you have to dig deep and work hard. there is a process that each person has to go through to make the team. there are a pool of players that are vying for the 23 positions. it as a team sport but also individually driven. you have to have a good balance of being able to be a good teammate, but also knowing how to push yourself. you are not only working when the team is together.
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the players on the men's national team play all over the world. they play in germany, france, holland, the u.s. they are not together a lot so when they come together, it is really about can they get themselves the chemistry they need. can they get themselves together and prepared so they're all on the same page? >> june 16, kickoff. >> june 12 is the opening game. >> you are going to be watching it, but i know johnson and johnson is an official healthcare sponsor. what is their role? >> they are a healthcare sponsor. for the first time, i did not know this, but the first time, there will be on each pitch throughout the world cup an emergency medical bag. >> you didn't know this did not exist? >> i didn't know this existed so it is nice to know there is a
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defibrillator. in case there is an emergency, the people that are going to be taking care of the players will have everything they need. that is a relief for the players. what they are also providing -- they are a family company -- health and wellness. the idea that families make a difference in children's lives. having been a professional athlete and now a mother, being a good role model to my family is a big responsibility. >> i will give you five seconds. what would make you scream with the same kind of delight that we have seen all over the world? >> if the u.s. won the world cup, i would go nuts. >> thank you very much. brandi chastain. that does it for "taking stock." good night.
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